how does PE (discretionary) bonus work
Can someone help interpret the language around bonus in my offer letter??
"$xxx bonus, provided that...we would determine the actual amount of the bonus based on your performance"
So, does this mean I'm not guaranteed to receive this amount of bonus, and in reality I might get 50%-80% (or even less) of it? is $xxx my guaranteed bonus, but they just needed to put the "provided..." clause in writing/any downward adjustment in bonus is only if I perform extremely poorly?
They aren’t going to guarantee your bonus, or else it would go against the concept of a bonus. Discretionary language is pretty typical - you can ask them / other team members how often people over / under perform that amount.
got it. you think it's ok to ask about/for a sign-on bonus, relocation, co-invest opportunit (or raise in base salary) if these were not mentioned/offered in the initial offer letter? how would you phrase it?
Not totally following initial post. Laying out some facts:
what is "on-target"? is the $xxx bonus amount they mentioned in the offer letter the "on-target" amount, or that is just a theoretical max bonus amount (and in reality bonuses are usually 50-80% of max bonus amount stated on offer letter).
No one here can affirmatively tell you because it's firm-dependent. However it appears that "on-target" means "meets expectations". So as long as the fund performs and you perform, you should hit it. But of course, it's discretionary so who knows.
Aligned. On-target is the offer letter $.
I would think it’s extremely rare for you to not get the bonus quoted in an offer. Unless you royally screw up, the language is to just cover themselves.
If you do a good job and they want you to stick around, they’ll most likely give you the quoted bonus. Depends on the firm but getting a significant haircut to that number would be a message.
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